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What Is SVXY Saying About ES And SPY?

Published 05/11/2017, 02:06 PM
Updated 07/09/2023, 06:31 AM
SVXY
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VIX
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Cash VIX popped from Wednesday's low at 9.66 to 11.25 Thursday morning.

Notice that the ​ProShares Short VIX Short-Term Futures (NYSE:SVXY) has reversed sharply off of Tuesday's new all-time high at 156.60 spiked to 148.37 Thursday before recovering to 151.40 or so.

More important is the damage the weakness has inflicted to the 4-week uptrend, with a violation of 153.50, which now becomes key near-term resistance (up to 155.30) in the event of recovery strength.

In the absence of a rally above 153.50-155.30, SVXY will remain vulnerable to a press that confronts the prior pullback low at 145.83, which if violated and sustained, has the potential to trigger a plunge to 134-130 rather quickly.

ProShares Short VIX Short-Term Futures

Latest comments

You're following trends in volatility products... good luck with that.
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